“We now expect underlying sales growth of 4.5% to 6.5% driven by our process and hybrid businesses.”

In context

“e still expect sales to be $1.5 billion to $1.6 billion as we continue to watch for the orders turn. Sales volumes are expected to ramp from Q2 to Q4, turning positive in Q4, consistent with our prior expectations. While we expect to sales to be down versus 2023, we expect modest adjusted EBITDA expansion as we recognize the cost synergies. Finally, I would like to thank the test and measurement team for an excellent quarter. The integration work has been performed exceedingly well, and your embrace of the Emerson Management System is very much appreciated. Thank you again to the entire test and measurement team. Please turn to Slide 10, for details of our Q2 and full year 2024 guidance. After our strong Q1 performance, we are increasing our full year 2024 sales and adjusted EPS guidance. We now expect underlying sales growth of 4.5% to 6.5% driven by our process and hybrid businesses. We expect both intelligent devices and software and control, to be within this guidance range for underlying sales. We continue to watch the discrete automation recovery closely, and we now expect sales to turn positive in Q4 consistent with test and measurement. Full year discrete automation underlying sales are now expected to be down in the low single-digit range. FX is expected to be approximately flat versus 2023 compared to a 1-point headwind embedded in our November guidance. Operating leverage, excluding test and measurement, is now expected to be in the low to mid-40s in 2024 versus the mid-to high 40s guidance from November. A modest reduction in our full year target is solely attributed to the move in FX as the 1% increase in sales volume comes in at a lower margin. Our adjuste”